Bybit Hacked: Largest Crypto Theft in History

Bybit Suffers $1.46 Billion Crypto Hack

Cryptocurrency exchange Bybit has fallen victim to a devastating hack, losing over $1.46 billion in liquid-staked Ether (stETH), Mantle Staked ETH (mETH), and other ERC-20 tokens. The attack, first identified by onchain security analyst ZachXBT, marks the largest cryptocurrency theft in history.

How the Hack Happened

Bybit CEO Ben Zhou confirmed that the breach occurred when a transfer from the exchange’s ETH multisignature cold wallet to a warm wallet was manipulated. The attackers exploited a sophisticated vulnerability, masking the transaction to appear legitimate while altering the smart contract logic, allowing them to drain the wallet undetected.

Bybit ETH multisig cold wallet just made a transfer to our warm wallet about 1 hr ago. It appears that this specific transaction was musked, all the signers saw the musked UI which showed the correct address and the URL was from @safe . However the signing message was to change…

— Ben Zhou (@benbybit) February 21, 2025

Despite the massive loss, Zhou reassured users that Bybit remains solvent and that all customer assets are fully backed 1:1. The exchange also stated that its cold wallets remain secure, and trading operations continue without disruption.

Tracking the Stolen Funds

Blockchain investigator ZachXBT reported that the hacker has already split 10,000 ETH out of the 401,346 ETH stolen, distributing it across 48 addresses. Bybit has enlisted external blockchain forensic experts to track the stolen funds and is appealing to the crypto community for assistance.

Impact on the Crypto Market

The breach sent shockwaves through the crypto industry, causing the price of Ethereum (ETH) to drop by over 3% following the announcement. The attack adds to a growing trend of high-profile crypto hacks, with February 2025 witnessing a significant rise in cybercrime targeting digital assets.

A Rising Trend of Crypto Hacks

Bybit’s attack follows several major security incidents in early 2025:

• ZkLend Hack (Feb 14, 2025): The Starknet-based money market protocol lost $9.5 million but recovered some funds through Railgun.
• Jupiter DEX & Mahathir Mohamad (Feb 5, 2025): Hackers compromised social media accounts to promote fake memecoins.
• Eliza Labs (Feb 2025): Founder Shaw Walters had his X account hijacked despite using two-factor authentication.

The crypto industry has faced increasing threats from cybercriminals, including North Korean state-backed hackers. In 2024, these groups stole an estimated $1.34 billion in cryptocurrency across 47 cyberattacks.

What Comes Next?

As the largest crypto hack in history, surpassing the $620 million Axie Infinity Ronin bridge exploit of 2022, Bybit’s breach raises serious concerns about exchange security. While Bybit assures users that their funds are safe, the incident underscores the importance of robust security measures and continuous vigilance in the crypto space.

Bybit continues to investigate the breach and has vowed to update users as new developments emerge. Meanwhile, the crypto community watches closely as experts attempt to trace and recover the stolen funds.